Platmin hires MCC as contractor for Pilanesberg

South African-focused platinum miner Platmin (PPN-T, PLNLF-O) has hired MCC Contracts to conduct open-pit mining at its Pilanesberg mine.

The platinum mine, located in South Africa’s Western Bushveld Complex, is expected to start production in early 2009.

The contract, worth US$596 million, will be in place for the first six years of the mine’s projected 13-year life. The project will create 500 jobs for communities surrounding the project.

MCC has gathered the necessary mining equipment ahead of schedule, giving the project a three-month jump on its initial planned start time.

Mining and stockpiling of ore from the surface outcrop is expected to begin in September. Recent power issues in Africa are expected to have minimal impact on the project’s operating costs. “Fortunately, being an open-cast mining project, these costs have not been directly affected by the recent

Eskom power cost increases,” said Ian Watson, CEO of Platmin, in a press release. Platmin has four key platinum projects in the Bushveld Complex. The region is estimated to contain 90% of global platinum mineral resources.